November 14, 2023
The growth rate surpassed the 11.6% rate projected in the Budget
Corporate Income Tax and Personal Income Tax amounted to INR 18.23 trillion
Refunds totalling INR 1.77 trillion have been issued from April 1 to November 9 in FY23
The net growth in Corporate Income Tax (CIT) collections during this period was 12.5%
India’s direct tax collections, excluding refunds, reached INR 10.60 trillion as of November 9 2023, according to a report from the Ministry of Finance. This figure reflects a significant 21.8% year-on-year increase and represents 58.2% of the Budget estimates for Direct taxes in FY24.
The growth rate of 21.8% surpasses the 11.6% rate projected in the Budget, which anticipated total direct tax collections, encompassing Corporate Income Tax and Personal Income Tax, to amount to INR 18.23 trillion.
According to the ministry, refunds totalling INR 1.77 trillion have been issued from April 1 to November 9 in FY23.
The net growth in Corporate Income Tax (CIT) collections during this period was 12.5%, while Personal Income Tax (PIT) collections saw a substantial growth of 31.8%. Before accounting for refunds, the gross direct tax collections stood at INR 12.37 trillion, marking a 17.59% increase compared to the corresponding period last year.
Experts noted that while Personal Income Tax collections are experiencing growth exceeding 30%, Corporate Income Tax collections still need improvement. They suggested that a clearer picture would emerge after the filing season concludes at the end of November, expressing the expectation that recent Supreme Court victories for the department would contribute to tax collections for the current year.
Source: Financial Express